What is Customer retention for restaurants?
Customer retention measures the restaurant's ability to make customers come back. It's calculated as the percentage of customers who repeat purchase in a period. High retention indicates satisfaction, good experience, and brand connection.
Why it matters for restaurants
- Reduce dependence on constantly attracting new customers
- Increase revenue without increasing marketing budget
- Build a stable base of loyal customers
Example applied to a restaurant
A ramen restaurant in Buenos Aires had 12% monthly retention. They implemented follow-up emails with a discount for second visit and a points program. In 5 months retention rose to 21%. Retained customers spent on average $2,400 ARS more per visit than new ones.
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